Crystal Blockchain believes crypto theft is responsible for more than $2 billion in losses in 2022.

Bad actors continue to find new spaces to transact with peer-to-peer exchanges. Provider of blockchain analysis tools Crystal Blockchain details the latest blockchain data in his recent report.

According to Crystal Blockchain ‘Crypto Asset and Blockchain Industry Report 2022‘, there was a 15 percent increase in funds sent to the darknet from illicit sources in 2022. The report aims to support financial institutions, regulators and users in making informed decisions about cryptocurrency risk management in the future.

Marina Khaustova's Crystal Blockchain Report
Marina Khaustova, CEO of Crystal Blockchain

Marina Khaustova, CEO of Crystal Blockchain, explained what the report sought to cover. She said: “2022 has seen some of the most disruptive events not only in the crypto asset and blockchain space, but also economically and socially.

“In our report, the team at Crystal Blockchain aims to provide you with an overview of the state of the digital asset industry in 2022, how it fits into the broader global landscape, and where we see the industry going in 2023 and beyond.”

The report found that 2022 saw a significant increase in large-scale hacking, fraud and other crimes using crypto. Due to this trend, a number of authorities and regulators have taken big steps towards regulating crypto.

Crypto hackers stole more than $2 billion in 2022, with the upward trend of exploiting DeFi projects. The blockchain tools vendor found that NFTs have also become increasingly popular among carpet-pulling fraudsters. In total, in the first half of 2022, more than $70 million was stolen in carpet pulling based on NFT projects.

Decentralized Finance Hacks

Crystal Blockchain’s July crypto report found that DeFi hacks were most dominant in the first half of 2022. The company’s analysis shows that 154 cases of illegal activity occurred during that time. Of these, 51 percent were related to DeFi hacking, with over $1.934 million worth of cryptocurrencies stolen. Fraudulent activity led to the loss of $132 million, while $77 million was lost due to security breaches.

Approximately $14.5 billion in cryptocurrencies was stolen between January 2011 and July 10, 2022, the report found. Crystal Blockchain also found that by 2021, the most popular method used to steal crypto was infiltration of crypto exchange security systems. Since then, DeFi hacks have become the fastest growing method used to steal cryptocurrencies.

In the first half of 2022 alone, stolen funds from just the top 10 DeFi attacks exceeded $2.5 billion. The report predicts that despite efforts by DeFi companies to address hacking with increased security measures, crypto theft using the method will continue to grow. He explains that the methods and technologies used by illegal hackers are becoming more sophisticated and advanced. This ensures that cryptocurrency theft will continue for the time being.

Leave a Comment

Your email address will not be published. Required fields are marked *